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August 2015 Investor Presentation – Atmos Energy

Atmos Energy · Aug 14, 2015 · 37 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. August 2015 Investor Presentation – Atmos Energy – slide 1
    Atmos Energy Corporation Delivering clean, safe and economical energy to over 3 million homes and businesses Atmos Energy A multi-state regulated natural gas delivery company achieving strong financial growth through…
  2. August 2015 Investor Presentation – Atmos Energy – slide 2
    Investment Highlights A Pure-Play, High-Growth Natural Gas Delivery Investment Proposition Attractive total return proposition of 9 - 11% Attractive pure-play 6 - 8% forecasted EPS growth through Fiscal 2018; current dividend yield of…
  3. August 2015 Investor Presentation – Atmos Energy – slide 3
    Attractive, Pure-Play Return Constructive Regulatory Mechanisms Support Efficient Conversion of Rate Base Growth Opportunities into Financial Results 900 million - 1.1 billion in annual Constructive rate mechanisms 6% - 8%…
  4. August 2015 Investor Presentation – Atmos Energy – slide 4
    Leading Natural Gas Delivery Platform Eight-state distribution territory Business mix Intrastate pipeline system Regulated distribution 61% Regulated distribution 68% Regulated Nonregulated pipeline 9% Regulated 30%…
  5. August 2015 Investor Presentation – Atmos Energy – slide 5
    Regulated Operations in Texas Scope of Texas Operations Distribution and Pipeline Over 60% of consolidated margins and about 70% of asset base are concentrated in Texas Constructive regulatory framework supports investment in system…
  6. August 2015 Investor Presentation – Atmos Energy – slide 6
    Distribution Divisions in Texas Operate in Constructive Regulatory Environment Distribution Divisions in Texas Serve Approximately 1.8 Million Customers Largest natural gas distributor in Texas Regulated by the Railroad…
  7. August 2015 Investor Presentation – Atmos Energy – slide 7
    Favorably Positioned Regulated Pipeline Spans Texas Shale Gas Supply Basins Atmos Pipeline Texas Regulated by the Railroad Commission of Texas Established to provide gas supply service to Mid-Tex and other LDCs 100% of margin…
  8. August 2015 Investor Presentation – Atmos Energy – slide 8
    Constructive Rate Mechanisms Reduce Regulatory Lag 45% of Fiscal 2015E CAPEX is Unlagged % of 2015E Spend Months of Lag Capex (in millions) Unlagged Unlagged Fiscal Capital Mid-Tex and West Texas Rule 8.209, 400 450 Mississippi,…
  9. August 2015 Investor Presentation – Atmos Energy – slide 9
    Regulatory and Recovery Mechanisms Regulatory Mechanism Recovery Method Jurisdiction Infrastructure Forward General Rate Base Annual Filing Program Looking Case (in millions) Texas Mid-Tex 8.209 - RRM/DARR/GRIP - 1,956…
  10. August 2015 Investor Presentation – Atmos Energy – slide 10
    Constructive Rate Outcomes Drive Operating Income Growth Annual Increases to Operating Income 1 Distribution and Pipeline Operations 150.0 Customers and investors 122.3 134.0 benefit from fair and 125.0 reasonable regulation 85 -…
  11. August 2015 Investor Presentation – Atmos Energy – slide 11
    Average Residential Bill Average Customer Bill Remains Affordable 70 60 58 57 56 2015E 2018E Assumptions 50 Monthly / Customer Normal weather and consumption 40 900 million - 1.1 billion annual CAPEX 30 Average all-in…
  12. August 2015 Investor Presentation – Atmos Energy – slide 12
    Capital Expenditures Drive Rate Base Growth Consolidated 2015E Capital Expenditures of 900 million - 1.0 billion ( millions) 1,100 900M - 1.1B Safety & Reliability 750 - 900 1,000 900M - 1.0B million 900 845.0 835.3 Pipeline…
  13. August 2015 Investor Presentation – Atmos Energy – slide 13
    Capital Spending Drives Rate Base Growth Strong Regulated Rate Base Growth Focused on enhancing system safety and reliability 7.2 - 7.4 Billion 8,000 7,000 6,000 ( billions) 5,000 4.1 Billion 4,000 3,000 2,000 1,000…
  14. August 2015 Investor Presentation – Atmos Energy – slide 14
    Investments Drive Rate Base Growth that Drives Earnings Growth Earnings Per Share Expected to Grow Between 6% 8% Annually Consolidated Results Factors Included in Projections 3.50 - 3.75 Capital expenditures of 900 4.00 million - 1.1…
  15. August 2015 Investor Presentation – Atmos Energy – slide 15
    Updated Fiscal 2015E Guidance Atmos Energy now expects earnings to be in the range of 3.00 to 3.10 per diluted share for the 2015 fiscal year, excluding unrealized margins. Net Income (excluding Mark-to-Market) Selected Expenses (…
  16. August 2015 Investor Presentation – Atmos Energy – slide 16
    Strong Financial Foundation Long-Term Debt Maturity and Liquidity Profile Debt Maturity as of Liquidity Profile as of June 30, 2015 June 30, 2015 millions millions 1,500 1,760 1,800 43.2 75.0 1.1 billion 1,200 Available 5…
  17. August 2015 Investor Presentation – Atmos Energy – slide 17
    Strong Financial Foundation Improved Weighted Average Cost of Long-Term Debt Average maturities about 20 years 2,500 8.0 2,000 Net Long Term Debt 7.0 Interest Rate % 6.9 6.9 1,500 6.5 6.3 6.2 6.2 6.0 1,000 5.9 5.0…
  18. August 2015 Investor Presentation – Atmos Energy – slide 18
    Sustainable and Growing Dividend 31 Consecutive Years of Dividend Increases 1.60 1.56E Quarterly Dividend 1.40 On August 5, 2015, the Board of Directors 1.20 declared a quarterly dividend of 0.39 per share 1.00 127th consecutive…
  19. August 2015 Investor Presentation – Atmos Energy – slide 19
    Total Shareholder Return Since Implementing Growth through Infrastructure Investment Strategy 150.0 127.8 125.0 119.2 100.0 92.9 Percent 75.0 66.0 69.5 Peer Average*: 61.9% 60.7 50.3 52.2 50.0 40.9 38.3 40.2 25.0…
  20. August 2015 Investor Presentation – Atmos Energy – slide 20
    Investment Highlights A Pure-Play, High-Growth Natural Gas Delivery Investment Proposition Attractive total return proposition of 9 - 11% Attractive pure-play 6 - 8% forecasted EPS growth through Fiscal 2018; current dividend yield of…
  21. August 2015 Investor Presentation – Atmos Energy – slide 21
    Appendix 22
  22. August 2015 Investor Presentation – Atmos Energy – slide 22
    Consolidated Financial Results Fiscal 2015 Q3 Q3 Fiscal 2015 Net Income versus Q3 Fiscal 2014 Net Income Average Q3 Fiscal 2015 Net Income Regulated Non Diluted (millions, except EPS) Distribution Pipeline Regulated TOTAL Shares EPS *…
  23. August 2015 Investor Presentation – Atmos Energy – slide 23
    Consolidated Financial Results Fiscal YTD YTD Fiscal 2015 Net Income versus YTD Fiscal 2014 Net Income Average Fiscal YTD 2015 Net Income Regulated Non Diluted (millions, except EPS) Distribution Pipeline Regulated TOTAL Shares EPS *…
  24. August 2015 Investor Presentation – Atmos Energy – slide 24
    Segment Financial Results Fiscal 2015 Q3 Regulated Distribution Quarter Ended 6/30 Key Drivers QTD ( millions) 2015 2014 Change 9.3M gross profit increase: Gross Profit 267.0 257.7 9.3 16.2M net increase in rate adjustments…
  25. August 2015 Investor Presentation – Atmos Energy – slide 25
    Segment Financial Results Fiscal 2015 Q3 Regulated Pipeline Quarter Ended 6/30 Key Drivers QTD ( millions) 2015 2014 Change 9.8M gross profit increase: 9.5M increase in rates from GRIP Gross Profit 97.0 87.2 9.8 filings approved in…
  26. August 2015 Investor Presentation – Atmos Energy – slide 26
    Consolidated Financial Results Fiscal 2015 Capital Expenditures Spending Mix YTD 2015: 667.5 million YTD 2014: 552.6 million 76.8 65.6 12% 12% 55.1 41.0 535.6 8% 7% 80% 446.0 81% Safety & Reliability Customer…
  27. August 2015 Investor Presentation – Atmos Energy – slide 27
    Key Regulatory Developments - Fiscal 2015 YTD Annual Increases in Operating Income from Rate Activity 87 Million Key Rates Approved 90.0 Fiscal 2015 YTD 80.0 70.0 APT GRIP - 37.2M 60.0 Mid-Tex Cities 2014 RRM - 16.8M (…
  28. August 2015 Investor Presentation – Atmos Energy – slide 28
    Key Regulatory Developments - Fiscal 2015 YTD Mid-Tex Cities: Settled 2014 Rate Review Mechanism (RRM) on May 7, 2015, granting a net increase in annual operating income of 16.8 million Authorized ROE of 10.50 percent; overall return…
  29. August 2015 Investor Presentation – Atmos Energy – slide 29
    Key Regulatory Developments - Fiscal 2015 YTD Colorado Rate Filing: Filed case on May 1, 2015, requesting a net increase in annual operating income of 5.3 million Requested ROE of 10.50 percent; overall return of 8.45 percent…
  30. August 2015 Investor Presentation – Atmos Energy – slide 30
    Key Regulatory Developments - Fiscal 2015 YTD Atmos Pipeline-Texas: 2014 Gas Reliability Infrastructure Program (GRIP) filing approved on April 8, 2015, providing an annual operating income increase of 37.2 million Based on return,…
  31. August 2015 Investor Presentation – Atmos Energy – slide 31
    Key Regulatory Developments - Fiscal 2015E Rate Filing Outlook Fiscal 2015E Q1 Q2 Q3 Q4 October December January March April June July September Kansas Issued GSRS for 0.3M Mid-Tex (Dallas) Settled Colorado Filed rate case in Kentucky…
  32. August 2015 Investor Presentation – Atmos Energy – slide 32
    Segment Financial Results Fiscal 2015 Q3 Nonregulated Operations Quarter Ended 6/30 Key Drivers ( millions) 2015 2014 Change Gas Delivery & Related Services 10.7 7.9 2.8 2.8M increase in gas delivery and related services:…
  33. August 2015 Investor Presentation – Atmos Energy – slide 33
    Segment Financial Results Fiscal 2015 YTD Nonregulated Operations Nine Months Ended 6/30 Key Drivers ( millions) 2015 2014 Change 6.5M increase in gas Gas Delivery & Related Services 39.3 32.8 6.5 delivery and related services:…
  34. August 2015 Investor Presentation – Atmos Energy – slide 34
    Texas Enjoys a Diverse Economy Employment by Sector at December 31, 2014 30.0 20.0 20.0 Percent 15.7 13.5 13.2 10.3 10.0 7.6 6.1 5.7 2.6 1.7 0.0 y t s es y g g n g gy it lit m en v ice v ic talit u rin ntin c tio i…
  35. August 2015 Investor Presentation – Atmos Energy – slide 35
    Low Oil Prices Benefit Most States Effect of a 50% Decline in Oil prices on Employment -2.0 -4.3 - -0.7 - -2.3 -0.7 -1.6 -1.2 -1.7 Alaska Hawaii February Unemployment Rate: US=5.5%; TX= 4.3% Percent change in…
  36. August 2015 Investor Presentation – Atmos Energy – slide 36
    Regulated Operations Effective Date of Authorized Requested Date of Last Rate Operating Operating Rate Base Requested Authorized Requested Authorized Requested Authorized Requested Texas thousands Rate Base Last Rate Filing Income…
  37. August 2015 Investor Presentation – Atmos Energy – slide 37
    Regulated Operations (continued) Date of Authorized Requested Effective Date Last Rate Operating Operating Rate Base Requested Authorized Requested Authorized Requested Authorized Requested Remaining thousands of Last Rate Filing…

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